The Gilded Age and Industrialization Quiz

The Gilded Age (1865-1898)

• This period, 1865-1898, saw rapid economic growth and technological advancements
• The period also produced significant social issues like a large gap between the wealthy and poor, especially impacting immigrants, people of color, and unskilled workers (including children).

Industrialization

• The Second Industrial Revolution (1850s) marked a new era of economic progress and technological advancement.
• Coal and iron powered the first Industrial Revolution, while oil, steel, and electricity (generated from burning coal) characterized the second.
• Technological advancements during this time significantly improved the standard of living for many Americans, however, a widening gap between the wealthy and poor exacerbated pre-existing social issues.

Railroads

• In 1865, there were 35,000 miles of railroad track in the US; by 1900, this figure increased to 193,000 miles.
• Railroads facilitated the transportation of goods and people across vast distances.
• The expansion of railroads boosted the development of large corporations and increased profits significantly.
• Corporations, which sold shares to investors, rose in importance, and prominent companies like Cornelius Vanderbilt's New York Central Railroad emerged as dominant forces in the northeastern US.

Steel

• The growth of railroads fueled a surge in steel production.
• Steel's improved strength and lowered cost made it essential for railroads and various other industries.
• Railroad companies relied on steel for track construction, while steel producers needed railroads to transport their product.
• Companies like Carnegie Steel and U.S. Steel, formed through mergers, dominated the steel market.
• Steel's lower cost made it a key material in construction and other industries, including the construction of skyscrapers in Chicago.

Oil

• Oil production depended heavily on railroads for its transportation.
• Crude oil, refined into kerosene for lamps, was frequently transported by train.
• High shipping costs led to the development of pipelines, which reduced reliance on railroads for oil transport.
• John D. Rockefeller's Standard Oil company became incredibly influential during this period, dominating the oil industry with its vast network and strategies.

Other Industries

• The growth of railroads positively impacted other industries by facilitating the transportation of goods and materials.
• Industries that produced goods like coal, steel, lumber, glass, textiles, brakes, and signals benefitted from the expansion of the railroad system.
• Time zones were created to better manage the railroad system.

Corporations

• The modern corporation became the central figure in the 19th century railroad industry.
• Large sums of money were needed for expansion.
• Railroads actively sought government subsidies and sold stock to investors to raise the necessary capital.
• Professional managers were employed to supervise complex operations and financial transactions.
• The need for comprehensive accounting and financial services ensured cost-effectiveness and profitability.
• Consolidation of smaller railroads into larger, more powerful corporations became increasingly common.

Nineteenth Century Technology

• Electric current advancements led to key innovations.
• Samuel Morse invented the telegraph in 1832, revolutionizing communication over long distances.
• Alexander Graham Bell invented the telephone in 1876, enabling instant voice communication over great distances.
• Thomas Edison's invention of the lightbulb in 1879 transformed urban areas and enabled factories to operate round-the-clock.

The Rise of Big Business

• A small group of exceptionally successful businessmen rapidly accumulated significant wealth in the late 19th century.
• Business practices employed by these individuals were often criticized by some as unfair or harmful to smaller businesses and the working class.

The Gilded Age

• The period presented a facade of prosperity, but underlying inequalities and hardships existed, particularly impacting immigrants, people of color, and unskilled workers.
• Mark Twain coined the term "Gilded Age," emphasizing the superficial nature of this period's wealth.
• This gilded appearance was a result of a thin layer of prosperity atop a foundation of inequality.

Trusts and Monopolies

• Trusts comprised groups of separate companies, managed by a single board, aimed at monopolizing their respective industries.
• This controlled a market's supply and price, directly impacting profitability.
• Horizontal integration encompassed mergers between companies producing identical products, increasing market share.
• Vertical integration involved mergers between companies involved in different stages of production, lowering production costs and consolidating market control.

Competition and Consolidation

• Investments frequently resulted in over-speculation and corruption within the railroad industry.
• Railroad companies employed rebates and kickbacks to compete with each other.
• Overexpansion and practices like stock-watering inflated company valuations before selling shares to the public.
• By 1900, a small number of powerful companies controlled a major portion of railroad lines, leading to accusations of monopolies in specific industries.

Cornelius Vanderbilt

• Despite starting with limited resources, Cornelius Vanderbilt became an extraordinarily successful businessman in the steamboat and railroad industries.
• He continually consolidated smaller railroads until his death in 1877.
• His efforts led to the development of significant infrastructure like Grand Central Depot in New York City.
• His wealth, if valued today, would exceed $200 billion.

John D. Rockefeller

• John D. Rockefeller founded Standard Oil in 1870.
• Rockefeller was a brilliant and astute businessman, effectively controlling the oil industry through trusts and cartels which were created to control the pricing of a product.
• He purchased weaker oil refineries and bypassed railroads by constructing pipelines thus lowering his production expenses.
• Rockefeller's control over the oil industry reached 90% by 1879; his vast wealth is estimated at over $400 billion in today's value.

Andrew Carnegie

• A Scottish immigrant, Andrew Carnegie constructed the Carnegie Steel Company in 1892.
• Carnegie used significant technological advancements like the Bessemer process to effectively produce steel.
• Similar to John D. Rockefeller's approach within the oil industry, Carnegie consolidated the steel industry through horizontal and vertical integration.
• His significant investments in giving to philanthropic causes are noteworthy.

J.P. Morgan

• J.P. Morgan, a prominent financier and industrial organizer, founded J.P. Morgan and Company in 1895, providing financial services.
• Morgan played a significant role in consolidating major corporations like United States Steel and General Electric.
• His enormous wealth, conservatively estimated, surpasses $25 billion in today's value.

Antitrust Movement

• Middle-class citizens rose up in opposition to unchecked corporate power, spurred by concerns regarding monopolies and perceived abuses.
• The Sherman Antitrust Act of 1890 sought to curtail the creation of monopolistic organizations by regulating and controlling interstate trade.
• This act made monopolies illegal.
• The act was weakened by subsequent supreme court decisions, especially US vs. E.C. Knight.

Social Darwinism

• Social Darwinism attempted to apply Charles Darwin's theory of evolution to social and economic issues.
• Proponents of this theory argued that wealth was a direct result of natural selection, supporting the argument that the wealthy justly deserved their status, and the poor deserved their poverty.
• This ideology was often used to justify racial and socioeconomic inequalities.

Marketing Consumer Goods

• Department stores, like Macy's and Sears, Roebuck, played significant roles in bringing goods to rural America.
• Transportation advancements in this era included improvements in food packaging and transportation via refrigerated cars, offering consumers access to wide varieties of fresh meat products.
• The era witnessed the birth of modern advertising and consumer culture.

Politics

• The politics of the Gilded Age faced criticism for failing to effectively tackle critical economic and social issues.

Presidential Elections (1880, 1884, 1888, 1892, 1896)

• Key political figures and events in presidential elections significantly impacted legislative and societal changes during this era.

Political Issues (1880s)

• The Pendleton Civil Service Act of 1881 aimed to reform civil service and eliminate the spoils system.
• Issues like the gold standard, economic disparities, farmers' difficulties, political corruption, and the influence of political machines became prominent during this time.

Political Machines

• Issues pertaining to urban areas' rapid expansion, political corruption, and the rise of significant political machines like Tammany Hall became relevant topics during this era.
• Political cartoons, like those by Thomas Nast, played a significant role in exposing these issues to the public.

European Immigration

• Socioeconomic challenges and political unrest in Europe motivated widespread immigration to the United States between 1880 and 1920.
• Millions of Europeans, driven by various factors, immigrated to the United States.
• Ellis Island became the primary processing site for European immigrants, with most being granted entry but a small portion being denied.

Asian Immigration

• Significant numbers of Chinese immigrants also arrived in the US, particularly in California, during the second half of the 19th century.
• Chinese workers played an integral role in building the Transcontinental Railroad, but their contributions were not always appreciated.
• Negative attitudes towards Chinese immigrants led to the Chinese Exclusion Act of 1882, banning immigration for ten years.

Angel Island

• Angel Island in California was the primary processing center for Asian immigrants, who faced significantly harsher conditions than European immigrants at Ellis Island.

Impact of Immigration

• Immigration influx brought about significant changes to the American society.
• Market demand rose, leading to economic growth.
• Immigrants often filled unskilled jobs, impacting production.
• Immigrants contributed greatly to American cuisine, music, and literature.

The Labor Movement/Gilded Age Labor Conditions

• During the Gilded Age, a significant segment of unskilled workers endured long working hours and low wages, often in hazardous conditions.
• Factory work involved grueling conditions for many factory employees.
• Tenements served as densely populated multi-family apartments, providing inadequate living conditions for workers.

Organized Labor

• Workers often grouped into labor unions to address issues including low wages, challenging working conditions, and dangerous working environments.
• Collective bargaining was a key aspect of labor unions' struggle.
• Strikes were a prevalent tactic for labor unions striving to push for better wages and conditions.

The American Federation of Labor (AFL)

• Samuel Gompers, an English immigrant, helped establish the AFL, a skilled workers' union, in 1886.
• The AFL prioritized improvements in wages and conditions of workers, without seeking to dismantle American Capitalism.
• Strikes and closed shops (employing only union members) were characteristic tactics utilized by the AFL.

Notable Labor Protests (Haymarket Riot, Homestead Strike, Pullman Strike)

• Labor disputes escalated into significant and violent confrontations.
• The Haymarket Riot of 1886, Homestead Strike of 1892, and Pullman Strike of 1894 were notable examples of labor conflicts that impacted the course of the American labor movement.

An Alliance Against Labor

• Government actions frequently sided with businesses rather than workers throughout this period.
• Labor organizations persisted, influencing socialism amongst certain union members.

The Good and Bad of the Gilded Age

• The Gilded Age presented contrasting aspects.
• Rapid economic growth, technological advancement, and urbanization were positive sides of this period.
• Poverty, inequality, child labor, and political corruption were significant drawbacks that impacted various segments of the population.